No additional requirements established for banks in Kazakhstan after sanctions against Moscow Exchange - financial regulator

ASTANA. June 17 (Interfax) - In response to recent sanctions imposed by the US Treasury on the Moscow Exchange and related entities, Kazakhstan's financial regulator has confirmed that no additional requirements have been imposed on Kazakhstani banks regarding ruble transfers.

The Agency for Regulation and Development of the Financial Market clarified that Kazakh banks independently determine their compliance policies concerning payments and transfers involving sanctioned entities.

As reported, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions last Wednesday against Moscow Exchange PJSC , the National Clearing Center (NCC) and the National Settlement Depository.

"Banks assess transaction risks independently for compliance management. To mitigate potential secondary sanctions on Kazakhstan, they adopt a conservative approach with regard to payments involving sanctioned entities," the Agency for Regulation and Development of the Financial Market stated in response to queries on regulations for second-tier banks regarding ruble transfers.

"Meanwhile, the relations of banks with their clients are of a civil nature, according to Article 33 of the Banking Law, and arise on the basis of the will of the parties and are conducted on the basis of agreements due to existing mutual obligations to one another in accordance with the terms of these agreements. Taking this into account, we note that banks and their clients make decisions independently on how they conduct operations; they take the relevant possible risks into account in accordance with the requirements of current legislation," the agency said.

The regulator emphasized that despite sanctions against the Moscow Exchange and its subsidiaries, Kazakhstan's second-tier banks have not faced new restrictions or directives concerning ruble transactions.

Several Kazakh banks, including ForteBank, Eurasian Bank, and VTB (Kazakhstan), confirmed that they continue to facilitate ruble transfers without disruption. VTB Bank highlighted that "clients can conduct both outgoing and incoming transfers in Russian rubles and Kazakhstani tenge through conventional banking channels or the VTB KZ Online mobile application."

First Heartland Jusan Bank affirmed its commitment "to adhering to foreign laws impacting its operations while maintaining normal ruble transfer services."

Several banks approached for comment by Interfax did not respond.

Timur Suleimenov, the head of Kazakhstan's National Bank, stated earlier that the sanctions on the MOEX would not affect Kazakhstan's exchange rate. Despite Moscow Exchange's minority ownership stake (13.1% of shares) in the Kazakhstan Stock Exchange (KASE), KASE reported that operations at the exchange and its Clearing Center remain unaffected, with trading, clearing, and settlements continuing according to established regulations.